The start of the year is a good time to start new habits, with many people taking a closer look at their finances at this time of year. With the ongoing cost of living increases weighing on people’s minds, finding ways to reduce your outgoings is a good way of helping you prepare for the future. It can also help you develop a financially motivated mindset, so you can think about your finances in a different way.
It may seem difficult to cut your outgoings, but there are likely some things you haven’t thought of or some additional ways you can save some money. Take a look at the following tips to find ways to reduce your outgoings and make your budget a little easier to manage this year.
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Comb your outgoings for unused items
A closer look at your outgoings can reveal a lot about your outgoings. Do you have a gym membership you don’t use? A habit of buying takeout coffee or lunch daily? If you’re serious about making some savings, you need to be serious about making some cuts.
Go through each line of your spending and work out where the savings can be found. Even if you save as much as $10 a week in places, that’s still $520 more by the end of the year.
See if savings can be made on your regular expenses
Once you’ve taken out the unnecessary expenses, you’re then left with the essential expenses such as your mortgage or rent, loan payments, and utilities. While these may not have much wiggle room, you could find yourself able to make some bill negotiations on your cable, internet and other outgoings. You could also try any insurance providers you have, or look for better deals on your credit cards or loans. Any savings you can make here should be considered a win, helping you reduce your overall outgoings.
Cut your car costs
Cars are expensive to run, so if you can find ways to cut back on how much you spend on your car, you could enjoy some great savings. Some of the things you can do to cut your car costs include:
Drive less
Using your car less is the easiest way to save money. You’ll cut back on fuel, while a lower mileage may help your car last longer without needing significant maintenance or replacement. Even using your car one day less a week could make a difference to your spending. Carpooling is a great way to save money on driving, or you could look at other modes of transport to help you save money.
Switch to a different vehicle
A quick way to save on your car costs is to switch to a more affordable vehicle. If you pay monthly for your car, you could swap to something more economical to free up some money each month. More and more people are switching to electric vehicles, so if you want to save money while helping the environment, check out the benefits of an electric vehicle and see if it’s worth making the switch.
Drive safely
Being a reckless driver can hit your finances hard. The cost of dealing with an accident and increased insurance can really impact your budget, while also putting lives at risk. Is it worth it? Taking steps to become a safer driver will help you keep yourself and your vehicle safe, making your car much cheaper to run.
Playing your part helps others stay safe on the road, but you can’t always rely on the actions of other people. If you’re ever in a car accident, a car accident lawyer could help you deal with any legal action that’s needed, including securing compensation. Proving yourself a good driver can help you with any legal case, which is why it’s important to always drive safely and calmly.
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Be more selective with your subscriptions
It’s likely you have several subscriptions listed under your monthly outgoings. From music streaming services to on-demand TV and movies, the internet is full of different subscription packages. Being more selective with your subscriptions will help you save some money, especially if you don’t get the full use out of them.
Decide what you value most in a streaming service, so you can choose the best subscription for your needs. Some companies like Netflix and Spotify offer reduced rates in exchange for ads on their services, which may help you save some money while keeping the services you love.
Reduce your food waste
Food can be a major outgoing for you and your family, and with food prices increasing, you could find your grocery shop is costing you even more money than you’d like. The key to cutting your food spend is to reduce your food waste. By only buying and using what you need, you can make sure your grocery bill is much more affordable, while helping the environment by making better food choices.
Find alternative forms of entertainment
If you’re trying to save some money, you might have to cut back on some of the things that you’re used to, such as eating out or going out for drinks. Cutting back on entertainment doesn’t have to mean missing out on the fun, there are plenty of free things you can do to save some money and still have a great time.
Check out some ideas for some fun nights in that you can enjoy with your friends and loved ones.
Go green to reduce your energy bills
Energy costs keep increasing, but that doesn’t mean your bills have to climb. By making some simple changes, such as switching to more energy-efficient lighting, you can make some savings on your energy bill and bring your outgoings down.
Finding savings can be tough, but if you’re serious about making cuts – you’ll find areas to save. Take a look through your outgoings to see if you can make some changes to your spending. Any saving is a saving, and when you look at how much that turns into over the course of a year, you’ll see the difference it can make.
